CLOV is a healthcare SPAC that is quite popular with the wallstreetbets crowd. It typically carries a very large amount of open interest, and along with that a lot of options gamma. Because of this CLOV seems to pin SpotGamma’s highest gamma strike.
In the chart below you can see this highest gamma strike for each day in red. Note as that red strike moves around, the stock seems to pin that line. At the moment we calculate the 10 strike as holding the most gamma. We anticipate this remaining in effect until the May 21 options expiration.
CLOV is currently well below that level after a sharp reversal to start the week. However, if options flow continue to accrue at the 10 strike we think there is a decent chance the stock returns to that level.